Global Investing

Anticipating the fallout from South Africa’s ratings reviews

June 10, 2014

South Africa is due ratings reviews this Friday. Chances are that the Standard & Poor’s agency will cut its BBB rating by one, or possibly even two notches.  Another agency Fitch has a stable outlook on the rating but could still choose to downgrade the rating rather than the outlook. What will be the damage?

Asia’s credit explosion

March 22, 2013

Whatever is happening to all those Asian savers? Apparently they are turning into big time borrowers.

Record year for global bond markets in 2012

January 3, 2013

How good was 2012 for bond markets? Very good, by the look of the many records broken.

In Brazil, rate cuts but no economic recovery

July 11, 2012

Brazil’s central bank meets today and almost certainly will announce another half point cut in interest rates, the eighth consecutive reduction since last August. But so far there is little sign that its rate-cutting spree – the longest and most aggressive  in the developing world – is having much success in resuscitating the economy.

Three snapshots for Tuesday

May 8, 2012

Equities in the countries most exposed to the euro zone crisis seem to be being hit especially hard this year. The Datastream index of shares in Portugal, Italy, Ireland, Greece and Spain has a total return of -5.3% this year compared to +8.9% for a euro zone index excluding those countries.

Yield-hungry tilt to equity from credit

April 2, 2012

For income-focused investors, the choice between stocks and corporate bonds has been a no-brainer in recent years. In a volatile world, corporate debt tends to be less sensitive to market gyrations and also has offered better yields – last year non-financial European corporate bonds provided a yield pickup of  73 basis points above stocks, Morgan Stanley calculates.

Becoming less negative on Europe

February 21, 2012

Markets are unimpressed today by Europe finally agreeing to bail out Greece for the second time, with European stocks down -0.6% on the day.

from MacroScope:

Dramatic ending to Greek tragedy

September 16, 2011

Greece is in the danger zone. Even as the country's finance minister sought to reassure his euro zone counterparts at a meeting in Poland, Greek credit default swaps were pricing in a more than 90 percent chance of default, according to Reuters calculations of Markit data. Economists in a Reuters poll see a 65 percent chance of that happening, probably within a year.

Credit rules, ok?

November 17, 2009

Equities may be the poster child for this year’s market recovery, but corporate bonds have been the runaway outperformer.

from DealZone:

Cocos – credit market classics?

November 10, 2009

 "Cocos" has become the user-friendly name for a new type of hybrid bond created to help UK bank Lloyds raise money from investors to break away from a government insurance scheme for bad loans.